2023-05-24 11:02:27
Apple plans to invest $430 billion in the United States within five years.
(Photo: AP)
Düsseldorf The electronics manufacturer Apple will have parts for communication chips developed and manufactured in the USA as part of a multi-billion dollar deal. The multi-year agreement with the chip group Broadcom includes, among other things, components for 5G radio technology, as the iPhone group announced on Tuesday. There was no specific information on the volume of the deal or the term.
The collaboration involves, for example, so-called Fabre filters, which transmit acoustic vibrations particularly well and quickly. The filters and other components are to be manufactured in the USA, including in Fort Collins in the state of Colorado, as the company emphasized.
“All Apple products depend on technology designed and built here in the United States,” CEO Tim Cook said in a statement. “We will continue to increase our investments in the US economy because we have steadfast belief in America’s future.”
Apple: Deal with Broadcom to boost manufacturing of own semiconductors and modems
The press release is no coincidence. Apple has so far manufactured an overwhelming part of its devices and components in China. However, since US President Donald Trump was in office, there have been political tensions between Washington and Beijing. These are even stronger under his successor Joe Biden.
Apple reacted to this and, for example, did not relocate the assembly of MacPro computers to Asia in 2019 as planned, but continued to produce them in California. The group also moved parts of the production from China to India. In addition, in 2021, Apple committed to investing $430 billion in the United States over five years. The group is creating 2.7 million jobs in the country directly and indirectly, it said.
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Through the alliance with Broadcom, Apple is also driving its efforts to develop important components such as semiconductors, modems or 5G technology itself. So far, Apple has been using Qualcomm 5G modems. However, experts expect a change to a self-developed 5G modem for the coming year.
Qualcomm also assumes that it will lose the modem business with Apple in the long term. The group had already bought Intel’s radio modem division in 2019 – and thus also gained a development site in Munich.
Following the announcement, Broadcom shares rose 4.3 percent in premarket trading on Tuesday.
With agency material
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First publication: 05/23/2023, 4:13 p.m. (last updated on 05/23/2023, 5:35 p.m.).
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